Callinex Confirms New Zinc Deposit at Superjack and Provides Exploration Update

Highlights

  • Drill hole SJ17-88 intersected 1.9m of massive sulphides grading 8.0% zinc equivalent mineralization in the newly discovered D Zone at the Superjack Project;
  • A recently completed 44km surface pulse electromagnetic survey indicates there may be potential to expand mineralization at depth and along strike; and
  • A total of 31 drill holes have been recently completed at the nearby Nash Creek Project where drilling is ongoing.

Vancouver, British ColumbiaNovember 16, 2017Callinex Mines Inc. (the “Company” or “Callinex”) (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce that drill hole SJ17-88 intersected 1.9m of massive sulphides grading 8.0% zinc equivalent (“Zn Eq.”) mineralization (6.1% Zn, 1.0% Pb, 0.1% Cu and 35 g/t Ag) in the newly discovered D Zone at the Superjack Project located in the Bathurst Mining District of New Brunswick (See Table 1). This intersection occurs approximately 100m vertically below drill hole SJ17-90 that discovered the D Zone with 2.7m of massive sulphides grading 6.2% Zn Eq. (4.4% Zn, 0.9% Pb, 0.3% Cu and 18 g/t Ag) at a down-hole depth of 40.4m (See News Release dated September 19, 2017). These two mineralized intersections appear to be the only drill holes that have tested the D zone horizon. Further drilling is planned to test off-hole targets and test the strike and depth extent of the new zone, which is wide open along strike and at depth.

Massive sulphide mineralization at the D Zone appears sandwiched between conductive graphitic argillites. These conductors, along with many others, were identified by a 1992 horizontal loop electromagnetic (“HLEM”) survey but were never drill tested. The Company has subsequently completed a large 44km surface pulse electromagnetic ground survey to further evaluate historic targets. Preliminary results indicate significant untested strike length in proximity to the A, B, C and D zones.

Drill hole SJ17-88 also intersected 2.9m of massive sulphides grading 5.6% Zn Eq. mineralization (3.9% Zn, 0.8% Pb, 0.2% Cu and 24 g/t Ag) at the B Zone. A subsequent borehole survey indicated there may be potential to expand the mineralized zone at depth and along strike.

Additionally, drill hole SJ17-87 expanded the A Zone at depth by approximately 20m with a 3.5m intersection grading 5.3% Zn Eq. (3.4% Zn, 0.9% Pb, 0.3% Cu and 20 g/t Ag). A second drill hole, SJ17-92, was completed approximately 260m beneath the A Zone deposit but did not encounter any significant results. It is unclear whether this drill hole intersected the projected horizon.

2017 Bathurst Drilling Campaign Update

Following the completion of the initial Nash Creek and Superjack phases of the 2017 Bathurst Drilling Campaign which consisted of 30 holes totaling 8,412m, two drill rigs were mobilized to the Nash Creek Project to conduct further drilling to expand the Nash Creek Deposit. This drill program was prioritized over follow-up exploration at the Superjack D Zone in order to conduct additional drilling in advance of an updated resource estimate and maiden Preliminary Economic Assessment (“PEA”) at the Nash Creek Deposit (See Table 2). Additional drilling is planned to follow up on the Superjack D Zone discovery.

Since the drill rigs were mobilized to the Nash Creek Project, 31 holes have been completed with the objective to expand the deposit to the north and complete infill drilling to test for additional unreported mineralization within the constraints of the current mineral resource. The last drill hole reported at the Nash Creek Project intersected 18.7m of 5.8% Zn Eq. (4.6% Zn, 0.7% Pb and 23.1 g/t Ag) at a starting depth of 10m adjacent to a historic hole that had only one sample taken that suggests potential for additional mineralization (See News Release dated September 12, 2017).

Approximately ten of the 31 drill holes have been sent to the lab for analytical testing while the additional 21 holes are being prepared for sampling. Callinex continues to drill with one rig and plans to complete several holes to identify the limits of the Nash Creek Deposit.

J.J.O’Donnell, P.Geo, a qualified person under National Instrument 43-101 and VP of Exploration for Callinex, has reviewed and approved the technical information in this news release

Figure 1: Map of the Bathurst Mining District of New Brunswick

Figure 2: Plan Map of 2017 Superjack Drill Holes

Figure 3: 3D View Looking Southwest of the Superjack A, B, C and D Zones

Table 1: Superjack Drill Results

Superjack Drill Results(1)(2)(3)(4)
Drill Hole From

(m)

To

(m)

Interval

(m)

Zn Eq.

(%)

Zn

(%)

Pb

(%)

Cu

(%)

Ag

(g/t)

SJ17-87 627.4 630.9 3.5 5.27 3.40 0.85 0.28 20.1
SJ17-88 239.3 241.2 1.9 8.04 6.11 0.99 0.11 35.3
and 629.9 632.8 2.9 5.59 3.92 0.77 0.19 24.1

Notes(1)(2)(3)(4):

  1. Zinc equivalent grades are based on the following metal prices: zinc US$2,525/t (1.15/lb), lead US$2,205/t (1.00/lb), copper US$6,000/t ($2.72/lb) and silver US$18.0 per oz. Metal recoveries of 100% were applied in the metal equivalent calculations. The zinc equivalent calculation is as follows: ZnEq = 100 ((Ag Price in (g) x Ag Grade) + (Pb Price*2204.6 x Pb Grade(%)/100) + (Cu Price*2204.6 x Cu Grade(%)/100) + (Zn Price*2204.6 x (Zn Grade(%)/100))/Zn Price*2204.6).
  2. Drill holes SJ17-89, SJ17-91, SJ17-92 and SJ17-93 did not encounter any significant results.
  3. The numbers may not add due to rounding.
  4. True widths are not currently known.

Table 2: 2016 Mineral Resource Estimates for the Nash Creek and Superjack Projects

Indicated Mineral Resources
Project Tonnes Zn Eq.

(%)

Zn (%) Pb

(%)

Ag (g/t) Cu

(%)

Contained Zn Eq.

(‘000 pounds)

Nash Creek 9,033,000 3.58 2.79 0.57 18.16 n/a 711,991
Total 9,033,000 3.58 2.79 0.57 18.16 n/a 711,991
Inferred Mineral Resources
Project Tonnes Zn Eq. (%) Zn (%) Pb (%) Ag

(g/t)

Cu

(%)

Contained Zn Eq.

(‘000 pounds)

Superjack 3,211,000 4.63 3.01 0.78 29.46 0.27 327,618
Nash Creek 1,113,000 3.58 2.83 0.57 15.51 n/a 87,883
Total 4,324,000 4.36 2.96 0.73 25.87 0.20 415,501

Notes:

  1. Resources are categorized according to CIM Definition Standards; it cannot be assumed that all or any part of Inferred Mineral Resources will be upgraded to Indicated or Measured as a result of continued exploration.
  2. The Nash Creek mineral resource estimate includes the Hickey Zone and Hayes Zone.
  3. The Superjack mineral resource estimates includes the Nepisiguit A (the “A Zone”) and Nepisiguit C Zones (the “C Zone”).
  4. Zinc equivalent resources for the Nash Creek Project were calculated using metal prices of $0.90/lb for zinc, $0.87/lb for lead, and $17.73/oz for silver. Metallurgical recoveries have been assumed to be 90.5% for zinc, 81.5% for lead and 50% for silver. A cut-off grade of 2.0% Zn Eq. was utilized in the resource estimate.
  5. Zinc equivalent resources for the Superjack Project were calculated using metal prices of $1.12/lb for zinc, $1.06/lb for lead, $2.97/lb for copper and $20.38/oz for silver. Metal recoveries have been assumed to be 100% for zinc, 72% for lead, 86% for copper and 70% for silver. A cut-off grade of 1.5% Zn Eq. was utilized in the resource estimate.

 

 Table 3: NQ Diamond Drill Hole Data

Hole ID UTM Zone 19T NAD 83 East UTM Zone 19T NAD 83 North Elevation (m) Azimuth (o N UTM) Dip (o) Length (m)
SJ17-87 723686 5252010 305 158 -57 869
SJ17-88 724091 5251574 276 154 -46 670
SJ17-89 723213 5251117 257 150 -54 405
SJ17-91 723686 5252010 305 170 -70 126
SJ17-92 723550 5251969 307 158 -68 1,122
SJ17-93 723795 5250847 221 130 -45 360

 

QA/QC

Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed in security sealed bags and shipped directly to SGS Canada Inc in Vancouver, B.C. for analysis. Samples were crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order produce a 250g split. All copper, zinc and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with overlimits (>100 ppm Ag, >10,000 ppm Zn, and >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or Aqua Regia digestion with ICP-AES finish (copper and zinc). All samples were analyzed for gold by Fire Assay of a 30 gram charge by AAS, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream at a frequency of 1 per 10 samples, and the collection of duplicate samples at random intervals within each batch at a frequency of 1 per 10 samples.

SGS Canada Inc carried out some or all of following methods to obtain the assay results for Callinex: G_LOG02 Pre-preparation processing, G_WGH79 Weighing and reporting, G_PRP89 Weigh, dry, crush, split, pulverize, G_SCRQC QC for crush and pulverize stages, G_CRU22 Crush >3kg, G_DRY11 Dry samples, GE_FAA313 @Au, FAS, AAS, 30g-5ml (Final mode), GE-IC14A Aqua Regia digestion/ICP-AES finish, GE_IMS14B Aqua Regia digestion/ICP-MS package, GE_IMS14 Aqua Regia digestion, GO_FAG303 30g, Fire assay, gravimetric finish (Au)(Final Mode), GO_FAG313 30g, Fire assay, gravimetric finish (Ag)(Final Mode), G0_ICP13B Ore Grade, Aqua Regia digest/ICP-AES. Ag >10ppm was analyzed by ICP and GO_XRF77B-pyrosulfate fusion.

About Callinex Mines Inc.

Callinex Mines Inc. (TSX-V: CNX ; OTCQX: CLLXF) is advancing its portfolio of zinc rich deposits located in established Canadian mining jurisdictions. The portfolio is highlighted by its Nash Creek and Superjack deposits in the Bathurst Mining District of New Brunswick. Callinex is actively drilling these projects in support of an updated resource estimate and maiden PEA planned for Q1 2018.

Additionally, Callinex is actively exploring its projects in the Flin Flon Mining District of Manitoba which notably include the Pine Bay and Big Island Projects. These projects are located within 25 km to an operating processing facility that requires additional ore within four years.

For additional information, please contact:

Callinex Mines Inc.
Max Porterfield, President and Chief Executive Officer
Phone: (604) 605-0885
E-mail: info@callinex.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the proposed drill program and the timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any forward-looking statement.